Is it better to do a big downpayment for a new car and have a lower monthly payment or do a smaller downpayment and invest the difference?


Two questions I asked myself when we were faced with a similar dilemma:


Are you secure enough in emergency savings, after paying the larger downpayment?

Will the invested difference earn more than the interest rate on the car loan?


I agree with eee3. Take a look at the difference between paying down the car vs the investments.

Also take a look at the pricing on the new loan. Sometimes you get a better rate with a higher loan amount or higher rate with a low loan amount.



That is a great question, and it looks like we have some great advice from our members. If you do have any additonal questions, you can also contact one of our financial advisors at: 1-800-771-9960. This is a service that may be used for free with you membership.


Thank you for posting in the community, best of luck!